Keeping the Personal Assets of the Owner of a Business

question 45

Multiple Choice

Keeping the personal assets of the owner of a business separate from the assets of the firm is an example of

• A) following the going concern assumption.
• B) applying the realization principle.
• C) following the separate entity assumption.
• D) applying the conservatism convention.

Realize the potential to manage and manipulate portfolio risk through investment in diverse securities including international exposure.

Acknowledge the limitations of diversification, particularly in eliminating all forms of risk.

Understand the stages of ethical development and their characteristics.

Recognize how businesses can practice social responsibility in decision making.

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Definitions:

Form Letter

A standardized letter used for sending the same message to multiple recipients, often customizable with specific details.

Machiavellian Values

A set of principles that prioritize deceit, manipulation, and self-interest as means to gain and maintain power and control.

Internal Locus

This term refers to an individual’s belief that they can control their life events and outcomes, as opposed to external forces being in control.

Organizational Politics

reflects the activities and actions within an organization aimed at improving personal or departmental gain, often at the expense of others or the company overall.